How to choose a potential currency? Just look at these five key points!
Choose the right track and the right project, and it will be more reliable to choose a currency!
First of all, you have to think clearly about which "circle" you want to play in in the future, which is to choose a track. Just like if you want to open a restaurant, you have to decide whether to make Chinese food or Western food first? After choosing the track, find the most promising "store" in this circle - the currency. Remember, it is better to open more "branches" (multi-track deployment), but if a certain "store" is particularly promising, it is also good to focus on running one.
Then, choose a good project, just like choosing a good chef!
The project must be able to run for a long time, the craftsmanship (competitiveness) must be strong, and it is best to grow vegetables and raise chickens by yourself (ecological closed loop), the ability to make money is great, and you can do something new from time to time (unique innovation). We are willing to invest in such projects.
Let's talk about ecological applications, just like the special services of a restaurant.
The token must be able to circulate in the project and form its own small circle. It is best to be able to spend it as money (payment function), pay service fees (GAS fee function), and save it to earn interest (staking function). Even if you can only save it to earn interest, it is better than just voting in meetings (governance function).
Liquidity is like the occupancy rate of a restaurant.
It is best if most seats are occupied (more than 80% liquidity), and half and half are also good. If there are too many empty seats (less than 50%), you have to see if more people will come in the future, and whether there will be many more empty seats (token unlocking).
Finally, look at the market value, which is like the investment threshold of a restaurant.
Small businesses (low market value projects) often have great potential and sufficient room for growth. But if it is a big brand chain store (high market value project), unless it can really get bigger and bigger, we should be cautious. After all, we all want to find the "potential stock" that can double several times!
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